Apollo Tyres to reach revenue of $5 billion by 2026

News  /   July

New Delhi

India’s largest tyre manufacturer, Apollo Tyres Ltd, has planned to double its revenue and reach a $5 billion figure in 2026 and to improve its operating profit margin by 15%. According to the management of the company, it is believed that the company is targeting to generate a pre-term return on capital employed of 12 to 15%. It is also said that the debt to EBITDA ratio will also be maintained at two times the operating profit.

According to the analysts of ICICI securities, the company is planning to enter into new geographies within Europe, introducing TBR, targeting all-season tyres, and onboard German OEMs in PCR, due to which it might grow faster in the industry. These analysts’ also said that the company has begun seeding the large US market and will serve it with facilities offered in India and Hungary.

The company has also reported a 270.5% increase in the consolidated net profit. The revenue from operations has also improved by 39% and EBITDA has also jumped 69%. As per the analysts of ICICI securities, the margins achieved in Europe are sustainable. It was also said that the company is planning to reduce its raw material consumption by 5 to 7 % as the production will ramp up in the coming five years. 

Source – Mint

Image Source: Wikipedia

Also Read:

https://www.automotiveproductsfinder.com/news/apollo-tyres-launches-new-corporate-identity/134670

https://www.automotiveproductsfinder.com/news/ashok-leyland-and-apollo-tyres-collaborate-to-open-driver-healthcare-centre/133658

 

 

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